The 10 th International Days of Statistics and Economics, Prague, September 8-10, 2016 2015 USAGE OF EDI (ELECTRONIC DATA INTERCHANGE) IN THE CZECH REPUBLIC Petra Vrbová ‒ Jiří Alina ‒ Václav Cempírek Abstract: The growing interest in the use of Electronic Data Interchange (EDI) has brought many companies into using this form of inter-organizational electronic commerce in past years. However, there are approaches and opinions discussing efficiency, usage of EDI and mostly, whether EDI is still up-to-date or needed to substitute with another platform instead. Based on these kinds of discussions, we conducted a survey to study the current status of EDI usage in the Czech Republic. Findings from our survey helped us to understand whether companies find EDI adoption as useful and efficient or whether they are in the process of substitution. In addition, according to results of the survey, there was found out percentage of companies actively using EDI and if so, then for what purpose is this platform used mainly – which EDI messages are mostly exchanged and many others. This paper is based mainly on the research of Czech and foreign literature, survey filled by companies of particular areas of business in the Czech Republic. Main goal of this paper is to find out the current situation of EDI usage in the Czech Republic and propose some more ideas regarding EDI usage or its substitution. Key words: Electronic Data Interchange, Information technology, Web-based EDI, data exchange JEL Classification: E21, E23, R41 Introduction Electronic Data Interchange (EDI) technology is a type of inter-organizational Information Technology (IT) that enables trading partners to exchange data automatically between their information systems (Agi, Ballot, Molet, 2005). Electronic data interchange (EDI) is a form of inter - organizational electronic commerce where one trading partner (a buyer or seller) establishes individual links with one or more trading partners through a computer-to-computer electronic communication method (Brancheau, Janz, Wetherbe, 1996; Lee and Lim 2005).
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The 10th International Days of Statistics and Economics, Prague, September 8-10, 2016
2015
USAGE OF EDI (ELECTRONIC DATA INTERCHANGE) IN THE
CZECH REPUBLIC
Petra Vrbová ‒ Jiří Alina ‒ Václav Cempírek
Abstract: The growing interest in the use of Electronic Data Interchange (EDI) has brought
many companies into using this form of inter-organizational electronic commerce in past years.
However, there are approaches and opinions discussing efficiency, usage of EDI and mostly,
whether EDI is still up-to-date or needed to substitute with another platform instead. Based on
these kinds of discussions, we conducted a survey to study the current status of EDI usage in the
Czech Republic. Findings from our survey helped us to understand whether companies find EDI
adoption as useful and efficient or whether they are in the process of substitution. In addition,
according to results of the survey, there was found out percentage of companies actively using
EDI and if so, then for what purpose is this platform used mainly – which EDI messages are
mostly exchanged and many others. This paper is based mainly on the research of Czech and
foreign literature, survey filled by companies of particular areas of business in the Czech
Republic. Main goal of this paper is to find out the current situation of EDI usage in the Czech
Republic and propose some more ideas regarding EDI usage or its substitution.
Key words: Electronic Data Interchange, Information technology, Web-based EDI, data
exchange
JEL Classification: E21, E23, R41
Introduction
Electronic Data Interchange (EDI) technology is a type of inter-organizational Information
Technology (IT) that enables trading partners to exchange data automatically between their
information systems (Agi, Ballot, Molet, 2005). Electronic data interchange (EDI) is a form of
inter - organizational electronic commerce where one trading partner (a buyer or seller)
establishes individual links with one or more trading partners through a computer-to-computer
electronic communication method (Brancheau, Janz, Wetherbe, 1996; Lee and Lim 2005).
The 10th International Days of Statistics and Economics, Prague, September 8-10, 2016
2016
Structured exchanged messages are meant to be transmitted in a predetermined format
and content as well as semantically normalized. In terms of information technology, which
operates at the transition from the corporate or industry standards to international standards so
that the information flows as well as business operations as the geographic borders would mean
always less and less obstacles. There can be found many benefits in EDI adoption such as -
administrative costs savings (strictly electronic documents exchange, text and content shortening
in documents, reducing the risk of standard definitions different interpretation, easier the creation
of data bases in automated processing, multiple use only one recorded input data for both partners
and thus a substantial reduction risks of data errors, significant savings related to time
elimination, personnel and space-consuming while using and archiving pure paper documents),
the higher efficiency of the distribution chain according to modern management systems such as
VMI (Vendor Managed Inventory), QR (Quick Response), JIT (Just in Time), ECR (Efficient
Consumer response), etc.
1. USAGE OF EDI (Electronic Data Interchange)
Electronic data interchange (EDI) is the description used for the exchange of structured trade data
between the computer systems of trading partners. EDI is not a new idea; it was started in the
1960's in the USA. It is now replacing the traditional paperwork systems that have been used by
organisations for controlling the purchasing and movement of materials and components. The
development of EDI has enabled organisations to improve traditional relationships and at the
same time to reduce their costs and lead times (Mcgowan, 2012). Put simply it is the transmission
and receipt of trading documentation such as purchase orders and invoices electronically. This
eliminates the rekeying of data, the additional checking that this involves and the elimination of
the delays caused by the preparation of documentation and the postal services (Mcgowan, 2012).
EDI is a strategy of cooperation between suppliers, distributors and retailers so that they can
respond to consumer demand more rapidly the use of EDI can result in increased sales, reduced
stocks and improved profits (Banerjee, Kumar, 2002).
There are four elements required for EDI to work, these are - electronic mail for rapid
interpersonal communication, on-line networks to provide rapid communication, electronically
based business documentation, standard protocols for file transfers.
The benefits of EDI can be summarised under two main headings; these are:
- STRATEGIC
The 10th International Days of Statistics and Economics, Prague, September 8-10, 2016
2017
Under this heading are included a faster trading cycle and the use of just-in-time
manufacturing. JIT manufacturing results in lower stock levels.
- OPERATIONAL
The benefits here are reduced costs due to the elimination of rekeying of data, the
reduction of paperwork and postage costs. Improvements in paperwork lead to a
better cash flow.
A more careful definition of EDI is "the exchange of documents in standardised electronic
form, between organizations, in an automated manner, directly from a computer application in
one organization to an application in another. To gain knowledge about these processes have
been proposed recently, two different approaches to facilitate the application of sub-processes
and techniques for inter-organizational business processes based on EDI messages: